Chip makers’ stocks plummet for fear of Chinese reprisals against Huawei order

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Integrated circuits on a printed circuit board. The semiconductor industry has been at the center of the US-China trade war.

filonmar | E + | Getty Images

Computer hardware and semiconductor stocks plummeted on Friday after the Trump administration blocked chip deliveries to Chinese tech champion Huawei, raising concerns that the Chinese government will retaliate and hurt U.S. businesses with additional restrictions.

Qualcomm fell more than 5% and Intel lost 1.4% on Friday. Several small hardware businesses also fell on Friday, including Micron (2.9%), Lam Research (more than 6%) and Qorvo (more than 4%).

The decline reflects the uncertainty faced by stocks heavily dependent on the Chinese market as the United States and China face off in the final chapter of the trade war. Qualcomm is also currently in a patent license dispute with Huawei.

On Thursday, the Trump administration decided to block semiconductor shipments to Huawei by chip makers using US software and technology. Huawei needs imported parts and software for its smartphones and telecommunications infrastructure products.

In response, China allegedly investigated a response against US companies using the “list of untrusted entities”, which would harm US companies such as Qualcomm, Cisco and Apple, according to the managed Global Times. by the state.

Apple lost less than 1% in Friday’s session. Cisco gained less than 1%.

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